Amazon (AMZN) is currently trading upwards at $122.22 as of 10:51 AM EDT.
AMZN Stock (NASDAQ:AMZN) finished Tuesday trading at $122.19 moving down -1.98% from the day before. This shift was slower than the S&P 500’s 1.13% daily loss. The tech-heavy Nasdaq lost 0.07% and the Dow fell 1.01% at the same period. AMZN stock had lost 6.43% of their value in the past month, surpassing the S&P 500’s loss of 7.59% and falling short of the Retail-Wholesale sector’s loss of 5.97%.
As Amazon nears the deadline for its next earnings report, Wall Street will be watching for encouraging signs from the company. EPS of $0.27 are anticipated, a 12.9% decrease from the same quarter last year. According to our most current average estimate, quarterly revenue will total $128.19 billion, up 15.68% from the same period last year. Our Zacks Consensus Estimates anticipate full-year earnings of $0.21 per share and revenue of $523.76 billion, changes of -93.52% and +11.48% from the prior year, respectively.
It’s crucial to take note of the most recent adjustments to analyst forecasts for Amazon. The most recent short-term business trends, which can alter frequently, are often reflected in these modifications. As a result, optimistic estimate revisions show analyst confidence in the company’s operations and profitability.
Analysis of AMZN Stock
Our analysis demonstrates a direct correlation between these estimate changes and short-term stock prices. This is an opportunity for investors who employ the Zacks Rank. This model offers a straightforward, usable scoring system by taking these estimate changes into account.
The Zacks Rank methodology, which ranks companies from #1 (Strong Buy) to #5 (Strong Sell), has an established track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the last month, the Zacks Consensus EPS estimate has increased by 0.75%. Zacks presently has AMZN stock ranked third (Hold).
AMZN Stock: Time To Go In Big?
Aspects of Amazon’s present value, such as its Forward P/E ratio of 591.06, should be taken into consideration by investors. This valuation is higher than the Forward P/E of 23.89 for companies in the same industry.
We should also point out that Amazon (NASDAQ:AMZN) has a PEG ratio of 26.06. Comparable to the popular P/E ratio, the PEG ratio also considers the company’s anticipated earnings growth rate. As of yesterday’s close, the PEG ratio for AMZN’s sector was 1.23 on average. The retail-wholesale sector includes the Internet-Commerce industry. With a Zacks Industry Rank of 154, this category is in the worst 39% out of more than 250 industries.
By calculating the average Zacks Rank of the individual stocks within the groups, the Zacks Industry Rank assesses the health of each of our industry groupings. According to our analysis, the top 50% of graded industries perform two times better than the bottom 50%.
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